Re: Creditary Economics (CE)

[Paul Davidson <pdavidson@xxxxxxx>]

At 12:19 PM 5/27/01 -0400, you wrote:
> Don't you need to work into your model the
> fact that lending/borrowing is
> driven by the desire to purchase something from a seller who would
> rather
> have a bank deposit
> than the thing he is selling at that price?  And, in doing so, you
> will
> eventually come around to my 'General Framework for the Analysis of
> Currencies
> and Other Commodities' at
> www.mosler.org
> .
>
> w
maybe Kevin does -- but not entrepreneurs in a growing market economy who merely expect higher profits each production cycle.  Of course they need more liquidity as they expand --!

In the above it sounds like you are assuming that while "a seller who would rather
have a bank deposit
than the thing he is selling at that price?" The buyer would rather have a smaller bank account -- so that the rise in bank account of sellers just equals the fall in bank accounts of buyers.

Is that what you really mean? 

Paul

Paul Davidson

Editor, JOURNAL OF POST KEYNESIAN ECONOMICS

Holly Chair of Excellence in Political Economy

Economics Department - University of Tennessee

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